The end result is that there is an economic disaster of gargantuan proportions brewing. Once the graduates of today age and replace today’s workforce, how will they possibly drive the economy if a sizable chunk of their paycheck is still going to loan payments 10, 20 or even 30 years after graduation? We’re talking about trillions of dollars that won’t go towards consumer spending, startup capital or retirement savings.
The only solutions to this crisis, therefore, are to increase the value of an education markedly, or to decrease its cost. Once having dealt with this interest rate debacle, our leaders must continue to crack down on predatory colleges and non-accredited institutions; rein in wasteful spending at public colleges; simplify and streamline the college loan process in a way similar to what has been done in the credit card industry; and last but not least, work to better our primary education schools so that a true college curriculum can be taught to college freshmen.
It will be no easy task, but neither is entering adult life with a six-figure bill to pay down.